Centennial Coal to Cut 200 Jobs at Mandalong Mine Amid Market Challenges

Centennial Coal has confirmed the loss of 200 jobs at its Mandalong mine after failing to secure a new coal supply agreement with Origin Energy for the Eraring Power Station. The announcement comes as Centennial restructures its operations, shifting focus to export markets due to the impact of rising production costs and government-imposed coal price caps.

Federal Member for Hunter, Dan Repacholi, voiced his disappointment in a statement on 13 September 2024, emphasising the devastating effect this decision will have on workers and their families. Repacholi has been actively working on a deal to extend jobs at both Mandalong and the nearby Myuna mine until at least Christmas, with hopes of a longer-term agreement.

“Centennial’s decision to lay off workers before negotiations are complete is a slap in the face,” said Repacholi. He noted the disparity in treatment between workers and Origin Energy, which has been afforded security throughout the transition period.

Despite the layoffs, Dan Repacholi has said “I have spoken with the Mining and Energy Union to confirm that workers will be offered internal transfers across Centennial operations or will
receive their full entitlements and access to support during these changes”. Additionally, a Regional Workforce Transition Officer has been arranged to be on-site to assist employees in navigating available support services.

Newy 87.8 has been told by a community member that “No worker knows who will stay and who will go yet” suggesting workers have been kept in the dark, and “This is devastating for so many families”.

Centennial’s pivot to exports is in response to difficulties in securing domestic coal contracts due to rising costs, royalties, and new government emissions regulations. The company’s Myuna mine is also at risk of further job losses if an agreement with Origin is not reached soon.

Negotiations are ongoing, with Origin Energy stating it continues to receive coal from Centennial’s mines while discussing potential future supply contracts for Myuna. However, the uncertainty surrounding the future of the Eraring station, which could close as early as 2027, casts a shadow over the region’s coal industry.

As Centennial shifts its business strategy, many fear that this may signal a broader decline in coal-related employment in the Hunter region. With community and union leaders calling for Centennial, Origin, and the NSW government to come together, workers hope for a resolution that safeguards more jobs in the near future.

The coal industry in NSW has been under increasing pressure from market forces, and the job losses at Mandalong serve as a stark reminder of the challenges ahead for mining communities reliant on this sector.